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BASF Boosts Production in China to Meet Automotive Demand

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BASF SE's (BASFY - Free Report) Coatings division has expanded its production capacity at the Caojing plant in Shanghai, China, for polyester and polyurethane resin. Initially set up in 2015 with a capacity of 8,000 metric tons per year, the facility now has more than doubled its production, reaching an impressive 18,800 metric tons annually. This expansion not only reflects BASF’s strategic response to rising market demand but also strengthens its position in the industry.

In addition, BASF Coatings is set to enhance its electrocoat binder production at the Caojing site through process optimization starting in early 2026. This strategic initiative will further solidify BASF Coatings' leadership in the rapidly evolving automotive coatings market, enabling the company to better support the growing demand for all coating layers used by automotive original equipment manufacturers (OEMs) and component manufacturers across the Asia Pacific region over the next decade.

The expanded resin production capacity and the planned increase in binder capacities will strengthen the company's supply reliability, allowing it to better meet the rising demand for automotive OEM coatings in the region. This expansion highlights BASF's dedication to local manufacturing and its capacity to quickly adapt to customer needs.

Shares of BASFY have lost 6.1% over the past year against a 15.6% decline of its industry.

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BASFY’s Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , CSW Industrials Inc. and Axalta Coating Systems Ltd. (AXTA - Free Report)

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 169.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CSW Industrials’ current fiscal-year earnings is pegged at $8.50. CSWI, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 10.1%. The company's shares have rallied 28.4% in the past year.

Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters, with the average surprise being roughly 16.3%. AXTA’s shares have gained 1.2% over the past year. 

 


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